New Regulations a Moratorium on Payday Lenders?

(Toledo, OH) The Toledo plan commission will weigh in later this week on zoning restrictions for payday lenders.

A Toledo city council member is getting help from neighborhood and legal aid groups in a fight to regulate short-term lenders who offer quick loans at high interest rates. 

While state law won't allow Ohio cities to directly regulate the practices of short-term lenders, cities like Toledo are free to implement zoning restrictions on such businesses. Payday lenders would only be allowed to open roughly half-a-mile from each other. The zoning restrictions would only allow one short-term lender per 30-thousand people in Toledo...or a maximum of nine, according to the current population. 

Current short-term lenders would be grandfathered under the new regulations if they're adopted. So, as written, the new zoning code would essentially place a moratorium on any new short-term lenders in Toledo.

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